In August 1997, the (then) SIB published Consultative Paper 110 on
proposed changes to the regime governing Collective Investment
Schemes (see FS Brief 29 page 17).
In Rule Releases 178 and 179 the FSA has now implemented the
proposed changes in two areas.
PEP/savings plan - registers
The regulations have been amended to permit the cost of in-house
PEP and saving scheme sub-registers being charged to the property
of the unit trust, provided that specific provision is made for
such investors to receive regular information about the fund, have
the right to attend and speak at meetings, and for the fund
managers to implement the members' voting wishes. Previously, such
rights had only resided with the PEP nominee.
Previously, unit trusts and OEICs could allow up to 100% of the
value of their fund to be in "pre-listed" securities. Following the
Morgan Grenfell unit trust problems two years ago, the limit for
investments in pre-listed securities has been brought within the
current 10% limit for investment in unlisted securities. In
addition, the Manager of the funds is required to ensure that the
scheme properly provides a prudent spread of risk (in line with the